Bergen, Kongsberg end exclusive distribution agreement

Bergen Engines said Kongsberg Maritime will no longer be the exclusive distributor of its parts and engines for the maritime sector.

The companies announced the decision would go into effect in June this year, following a transitional period.

The two companies entered into a five-year agreement in 2019, when Kongsberg acquired the commercial marine division of Rolls-Royce. Bergen Engines was subsequently sold by Rolls-Royce to Langley Holdings plc, the British engineering group on Dec. 31, 2021.

Kongsberg Maritime will continue to distribute Bergen’s marine engines on a non-exclusive basis going forward. The termination has been described by both parties as “amicable.”

Kongsberg Maritime and Bergen Engines agree to end trading agreement. Since 2019, Kongsberg Maritime has been the ‘single route to market’ for engines produced by Bergen Engines for the commercial maritime market. This agreement of exclusivity is now about to be terminated. (Image: Kongsberg Maritime)

In 2021 Kongsberg Maritime’s revenues from the cooperation with Bergen Engines, represented 679 MNOK. The termination will see Bergen Engines taking over a defined spare parts inventory from Kongsberg Maritime, and also an undisclosed compensation for the loss of future business.

Kongsberg Maritime delivers systems for positioning, surveying, navigation, and automation to merchant vessels and offshore installations

Bergen Engines produces medium speed liquid and gas-fueled engines and generator sets supplied to a broad range of land based, commercial marine and naval customers. The Bergen name dates back to 1855 when the original company Bergen Mekaniske Verksted (BMV) was founded. In 1946 the company built its first diesel engine and has since commissioned over 7000 of its liquid and gas fuelled engines. More than half of them are still in operation today, such is the quality and reliability of a Bergen engine.

In 1999, Bergen Engines AS was acquired by Rolls-Royce.

The company’s new owner, Langley Holdings plc., has said Bergen Engines will be at the core of its Power Solutions division, working closely with the Langley’s Italian Marelli Motori and German Piller Power Systems subsidiaries.